Should the National Wages Council continue to propose a fixed quantum increment? How relevant are the annual guidelines for your organisation ?

THE NWC has been making such recommendations for many years now. These have always been seen as the ‘minimum’ expectation by workers and their unions, and the minimum that employers are obliged to pay. The consequence of this on the labour market is that employers who do not implement the minimum wage recommendations by the NWC are perceived as ‘unenlightened’ and risk losing staff to their competitors.

Now, proposing a fixed quantum goes a step beyond just making a recommendation. Many view this as setting a ‘minimum wage’, albeit unofficially. This may be a positive and necessary move due to the ongoing labour crunch Singapore is facing.